GUIDELINES FOR REVIEW OF REQUESTS FROM FEDERAL
CORPORATE CREDIT UNIONS FOR NATIONAL FIELDS OF MEMBERSHIP (FOM)
OFFICE OF CORPORATE CREDIT
UNIONS (OCCU)
The NCUA Board will consider, on a case by case basis, requests
submitted by federal corporate credit unions for national fields
of membership. Each case will be considered on its individual merits.
However, at a minimum, the following documentation and information
must be provided to, and reviewed by, OCCU before presenting the
requests to the NCUA Board:
1. Statement of intent. The corporate must indicate the
reason for the request and provide a copy of the board of directors'
resolution.
2. Business plan / marketing strategy. The corporate will
address its current operational condition and identify the impact
the national FOM will have on present operations. Analysis as to
the services the corporate proposes to offer to the targeted credit
unions is to be provided through an acceptable business plan and
marketing strategy.
3. Infrastructure/staff analysis. Documentation reflecting
management's review of existing infrastructure and staff to handle
the projected additional workload. If additional infrastructure
or staff are needed, a plan and time line for acquiring them should
also be provided.
4. Financial projections. The corporate will submit copies
of its current financial statements and copies of all analysis as
to income, expense, and share growth projections related to servicing
the projected additional membership. The projections will include
additional infrastructure/staff expense, if applicable.
This listing should not be considered as all inclusive. The corporate
should submit any other relevant information that will support the
request. Additionally, OCCU may ask for additional information after
reviewing the initial documents submitted.
Once OCCU has ascertained that all necessary information has been
provided, staff will review the documentation and other information
to determine the following:
1. Reasonableness of the plans and projections. A review
will be performed to determine that plans and projections are formulated
to address the ongoing safety and soundness of the corporate, and
the reasonableness of the marketing strategy plans to accomplish
the stated goals of the Statement of Intent. OCCU may recommend
a corporate seek a mult-state or regional FOM if its marketing strategy
only targets a specific geographic area.
2. Financial impact. OCCU will review the financial projections
provided by the corporate, as well as other sources of relevant
financial data. The review will ascertain any potential negative
impact on the corporate's financial condition and operating rations
which could threaten its safety and soundness.
3. Regulatory history. OCCU will review the requesting
corporate's most recent examination report, regulatory rating, and
any supervisory information to determine that there are no issues
of concern outstanding that could have a negative impact on the
proposed FOM expansion.
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